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March 03, 2006



Michael, what does your friend see as the point of the ratio? Is he trying to figure out what the turnover is? If so, the ratio as described seems to me an incredibly crude way of going about it.


This actually came from someone I was interviewing. Yes, he was trying to use it as a turnover indicator -- which indeed gives very crude results. Because of the many biases, I don't think it's useful, but it was strange enough that I felt compelled to report on it.

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